Pre-authorized debit (PAD) is a secure, online self-service payment option for individuals and businesses to pay source remittances. You set the payment amount and authorize the Canada Revenue Agency (CRA) to withdraw it from your Canadian chequing account on the date, or dates, you choose.
If your wages are going to be the same every month throughout 2021, you would save time by creating a pre-authorized agreement with CRA. You can use the following instructions to set it up:
- Visit CRA’s My Business page and click CRA Login under the heading “Option 2 – Using a CRA user ID and password”.
- Log in using your User ID and password.
- From the menu on the left, click “Manage pre-authorized debit” under the heading “My Business Account“.
- On the next page, click on the Create new agreement button.
- Choose “RP0001-Payroll source deductions” as the program account.
- Then choose “Regular remittance” as the payment allocation.
- On the next page enter the following amounts from this chart:
- Gross Payroll: This is the amount before any source deductions such as CPP, tax)
- Number of employees: (this would be 1 or however many owners there are)
- First payment date: Any date between Feb 1-10, 2021 is fine.
- Frequency would be monthly.
- Number of payments: 12
- Amount: (To be withdrawn each month by the CRA)
- Then enter the bank account information in the next section click Next.
- Confirm everything on the next page and submit.
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